World

Musharraf freed from months-long house arrest

Former president freed from months-long house arrest, days after he is bailed in case related to death of a radical cleric.

ISLAMABAD // Pakistan has freed former president President Pervez Musharraf from his months-long house arrest, days after he received bail in a case related to the death of a radical cleric, a prison official said yesterday.

Prison officials were withdrawn on Wednesday night from Mr Musharraf’s home on the outskirts of Islamabad, where he has been held under arrest since April, prison official Wajad Ali said. Mr Musharraf is now free to move around Pakistan, Ali said.

However, the former president and army chief is still barred from leaving the country pending multiple court cases against him, his lawyer has said.

A court granted Mr Musharraf bail on Monday in a case involving his alleged role in the death of a radical cleric killed during a raid on a hard-line mosque in Islamabad in 2007. That paved the way for his release after the necessary paperwork was completed.

Mr Musharraf, who has been plagued by legal troubles since he returned to Pakistan in March after years of self-imposed exile, already has been granted bail in three other cases against him.

The other cases related to his alleged role in the murder of former Pakistani Prime Minister Benazir Bhutto, the death of a Baluch separatist leader killed by the army and the detention of Pakistani judges.

Mr Musharraf, a 70-year-old former commando, seized power in a 1999 coup when he was serving as army chief and ruled the country for nearly a decade. He was forced to step down in 2008 in response to increasing pressure from a public unhappy with his rule. Mr Musharraf left the country shortly thereafter.

The images of Mr Musharraf facing justice like any other Pakistani citizen have been stunning in a country where the military has taken power in three coups and wielded enormous power even under civilian governments. Pakistan’s army chief advised Mr Musharraf not to return, but he ignored the advice.

For security reasons, he was held at his lavish estate in the suburbs of Islamabad instead of a jail. Pakistani security forces have been protecting the estate following threats by the Taliban.

There have been persistent rumours in recent months that a deal would be reached for Mr Musharraf to leave Pakistan to avoid the embarrassment of a former army head being tried in a civilian court.

But his lawyer Afshan Adil said Mr Musharraf would fight the cases against him and planned to remain in Islamabad for the time being.

* Associated Press

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”